Bharti Airtel surges 6% on plans to raise foreign investment limit2 min read . Updated: 13 Jan 2021, 01:23 PM IST
- As per latest shareholding pattern, FIIs hold 17.57% stake in the company, while the promoter entity has 56.23%. Mutual funds, insurance companies and others hold 26.2% stake
MUMBAI: Shares of Bharti Airtel jumped a little over 6% on Wednesday after the company said it will begin the process of revising its foreign investment limit to 100%, effective immediately.
At 11:00 am, the stock traded at ₹587 apiece on the BSE, up 3.7% from its previous close, while the benchmark Sensex was up 0.2% at 49633.74.
Also Read | What's got Indians excited about Covid shot
"Further to our intimation dated January 21, 2020, we wish to inform you that in compliance of the FDI approval dated January 20, 2020, granted to the company by the Department of Telecommunications, the company has received approvals for its relevant downstream investments. Accordingly, the company is initiating the process to revise its foreign investment limit, as notified to its depositories, to 100 per cent with immediate effect," the company said in a filing to the stock exchanges after market hours on Tuesday.
As per latest shareholding pattern, FIIs hold 17.57% stake in the company, while the promoter entity has 56.23%. Mutual funds, insurance companies and others hold 26.2% stake.
Bharti Airtel reported a consolidated net loss of ₹763.2 crore for the second quarter ended September, against a net loss of ₹23,405 crore in the year ago period. Revenue from operations rose 22.02% year-on-year to ₹25,785 crore.
In May, it had raised ₹8,433 crore by offloading 2.75% stake in the company through secondary market trades. Société Générale picked up 35.3 million shares for ₹1,981 crore, and other buyers included Blackrock, Fidelity, Norges Bank, Axis MF, HDFC MF, Birla MF, and SBI MF.
Bharti will continue its outperformance with a healthy 7% sequential wireless revenue growth on strong subscriber addition momentum and sustained improvement in subscriber mix, Motilal Oswal said in its sector oulook.
The brokerage expects Jio and Vodafone Idea to see relatively weaker performance, with 4% and 0.6% qoq growth in wireless revenue due to muted subscriber base expansion. "We estimate 8mn sub additions for Jio in Q3 (7.3mn in Q2), whereas Airtel added 10mn data subscriber."
"Bharti’s reported consolidated EBITDA should decline 2.3% qoq, mainly due to the de-consolidation of Infratel, with it being reported as an associate from this quarter. Underlying EBITDA excluding tower business should rise 6.6% qoq driven by operating leverage of India wireless. The Africa business should see another quarter of healthy EBITDA growth 3% qoq, despite Nigerian Naira depreciating slightly. VIL’s EBITDA should decline 4% qoq due to Rs300 crore one-off credit in network cost and license fees in Q2FY21. For all three players, data volume growth is expected to be steady in the range of 2-8% qoq." the brokerage firm said in an earnings preview.
Bharti’s home broadband segment ARPU is expected to be under pressure--down 7% qoq--with the full impact of lower-priced plans being witnessed in the quarter, it added. The brokerage has a 'buy' rating on the stock.